The Chinese producer price index rose to 1.7% in February to surpass expectations and mark the fastest pace in over two years, official data showed.
- Economists predicted the index to increase 1.5% last month from 0.3% in January.
- The latest data raises expectations of higher global prices as factories hike prices for exports. Chinese producer prices have already been a major contributor to global inflation.
- Bond markets already expect faster global growth and massive fiscal stimulus in the United States to push up inflation.
- Oil prices have surged to $70 a barrel, along with the rally of copper and agricultural goods, and the soar of shipping rates. The shortage of computer chips could also push up prices.
- Consumer prices fell 0.2% in February, slightly better than the projected 0.3% decline with the biggest gains recorded in mining.